Dataware Housing &

Business IntelligenceAn Overview

By Shivmohan Purohit

Agenda

• Introduction• Data Warehousing• Online Analytical Processing• Data Mining• Q & A

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What a firm/ Organization want to know….

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Which are our lowest/highest margin

customers ?

Which are our lowest/highest margin

customers ?

Who are my customers and what products are they buying?

Who are my customers and what products are they buying?

Which customers are most likely to go to the competition ?

Which customers are most likely to go to the competition ?

What impact will new products/services

have on revenue and margins?

What impact will new products/services

have on revenue and margins?

What product prom--otions have the biggest

impact on revenue?

What product prom--otions have the biggest

impact on revenue?

What is the most effective distribution

channel?

What is the most effective distribution

channel?

What is a Data Warehouse?

A single, complete and consistent store of data obtained from a variety of different sources made available to end users in a what they can understand and use in a business context.

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What is Data Warehousing?

A process of transforming data into information and making it available to users in a timely enough manner to make a difference

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Data

Information

Data Warehousing -- It is a process

• Technique for assembling and managing data from various sources for the purpose of answering business questions. Thus making decisions that were not previous possible

• A decision support database maintained separately from the organization’s operational database

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Data Warehousing• A data warehouse is a

– subject-oriented– integrated– time-varying– non-volatile

collection of data that is used primarily in organizational decision making.

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• A data warehouse is organized around the major subjects of the organization such as customer, supplier, product, sales, etc..,

• Data warehouse provides a simple and concise view around a particular subject by excluding data that are not useful to the decision support process.

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Data Warehousing

Type of DW Users

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Explorers: Seek out the unknown and previously unsuspected rewards hiding in the detailed data

Farmers: Harvest information from known access paths

Tourists: Browse information

Application-Orientation vs. Subject-Orientation

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Application-Orientation

Operational Database

LoansCredit Card

Trust

Savings

Subject-Orientation

DataWarehouse

Customer

VendorProduct

Activity

Functioning of Data warehousing

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Data Source Cleaning Transformation

Data Warehouse

New Update

Data Warehouse Architecture

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Data Warehouse Engine

Optimized Loader

ExtractionCleansing

AnalyzeQuery

Metadata Repository

RelationalDatabases

LegacyData

Purchased Data

ERPSystems

Star Schema

• A single fact table and for each dimension one dimension table

• Does not capture hierarchies directly

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T ime

prod

cust

city

fact

date, custno, prodno, cityname, ...

Snowflake schema

• Represent dimensional hierarchy directly by normalizing tables.

• Easy to maintain and saves storage

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T ime

prod

cust

city

fact

date, custno, prodno, cityname, ...

region

OLAP(Online analytical processing)

• A data warehouse stores data , but OLAP transform the data warehouse data into specific meaningful information.

• Therefore OLAP provides a user friendly environment for interactive data analysis.

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OLAP OPERATION on the Multidimensional data

–Roll-up(GROUP)–Drill down(Less)–Slice and Dice(Pie)–Pivot(rotate)

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Multi-dimensional Data

• “Hey…I sold $100M worth of goods”

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MonthMonth1 1 22 3 3 4 4 776 6 5 5

Pro

du

ctP

rod

uct

Toothpaste Toothpaste

JuiceJuiceColaColaMilk Milk

CreamCream

Soap Soap

Regio

n

Regio

n

WWS S

N N

Dimensions: Dimensions: Product, Region, TimeProduct, Region, TimeHierarchical summarization pathsHierarchical summarization paths

Product Product Region Region TimeTimeIndustry Country YearIndustry Country Year

Category Region Quarter Category Region Quarter

Product City Month WeekProduct City Month Week

Office DayOffice Day

“Slicing and Dicing”

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Product

Sales Channel

Regio

ns

Retail Direct Special

Household

Telecomm

Video

Audio IndiaFar East

Europe

The Telecomm Slice

Roll-up and Drill Down

• Sales Channel• Region• Country• State • Location Address• Sales Representative

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Roll

Up

Higher Level ofAggregation

Low-levelDetails

Drill-D

ow

n

Nature of OLAP Analysis• Aggregation -- (total sales,

percent-to-total)• Comparison -- Budget vs.

Expenses• Ranking -- Top 10, quartile

analysis• Access to detailed and aggregate

data• Complex criteria specification• Visualization

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Data Mining

• Data mining is sorting through data to identify patterns and establish relationships.

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Data Mining (cont.)

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Data Mining works with Warehouse Data

• Data Warehousing provides the Enterprise with a memory

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• Data Mining provides the Enterprise with intelligence

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Cleaning and Integration Databases

Data Warehouse

Flat Files

PatternsKnowledge

Selection and transformation

Data Mining

Data Mining Process

Thanks

Shivmohan Purohit

Q &A Discussion